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Debt help : Know your options when unable to repay bills yourself

The average debt per citizen is $63,921. The total debt per citizen is $212,742. The total debt per family is $833,030 where as the total savings per family is $4472. The scenario is grave. Americans are in serious financial problems and it seems they need immediate debt help and advice.

Do people really need financial debt help now?

Americans need financial debt help badly. The figures are enough to prove that.

US Debt statistics - 2018
US National Debt - $20,857,201, 270,542
US Debt per citizen - $63,921
Total debt per citizen - $212,742
Total personal debt - $18,893,789,800,528
Mortgage debt - $15,020,945,600,450
Student loan debt - $1,506,733,989,782
Credit card debt - $1,030,698,238,657
Personal debt per citizen - $57,721
Total debt per family - $833,030

Updated till March 12, 2018. Source:Debt Clock.

How to know you need help with debt

It’s not always possible to know that you have a debt problem. But nonetheless, it’s essential to know you’re getting into a financial crisis gradually. Otherwise, your debt may escalate to a great level, and you won’t be able to do anything. Here are a few signs to indicate you’re getting into a financial crisis gradually.

Warning signs you need help with debt
  • You’re using the maximum portion of your income for paying off debts
  • You’re only making minimum payments on your credit cards
  • You’re over the credit limit on your plastics
  • You are paying bills with money allocated for other stuff
  • You often pay your bills late
  • You’re using your savings for paying bills
  • You are not visiting doctors due to financial problems
  • You’re getting collection calls regarding your overdue bills
  • You often worry about your debts
  • You’ll be in a big mess if your boss fires you
  • You are using credit cards for buying everything
  • Your minimum monthly payment amount is quite huge
  • You’re turned down for loan applications frequently

Are all the signs applicable for you? If so, then contact our Financial Coach for getting help with debt problems. The Financial Coach will suggest you the options to solve your problems.

What are the various debt help options?

If you need help with your unsecured debts, you can approach a debt relief company and choose the option which suits your financial condition:

  1. Debt management help – A debt management program, involves a counseling session, where the experts associated with the company analyze your finances, and then try to lower the interest rates charged by your creditors through negotiation. They can also advice you about effective money management, so that you can comfortably pay off your dues over time, with an affordable payment plan.
  2. Debt consolidation help – A consolidation program or a loan can help you to readjust your debts by bringing them together. You can benefit from single affordable monthly payments, and even extend the repayment terms according to your convenience. Besides, the financial experts can also negotiate with your creditors or collection agencies to reduce interest rates, waive off penalties, late fees etc.
  3. Debt settlement help – If you need help with excessive debts, you can choose to settle them for a reduced amount. The best benefit associated with settlement is that, it brings down the debt amount so that you pay less than what is owed. The company, offering you debt settlement services, negotiate with your creditors and collection agencies to get you the best possible deal, which you can afford to pay.
  4. Bankruptcy help – This is the ultimate debt relief option, and should only be chosen if no other debt free option works for you. Bankruptcy can help to discharge most of your unsecured debts or reorganizes them so that you can pay them off over an extended time period.

How to find help with credit card debts

If you rely too much on your credit cards, and spend more than what you can pay for, you'll evidently end up with enormous credit card debts. You can practice budgeting to get rid of them first. If that doesn't work, you can seek help from professional agencies and go through their credit card debt relief process. Depending on the amount and your affordability, you can either choose management or consolidation or settlement, to get rid of your growing credit card bills.

How to find help with payday loan debts

Too many payday loans or short-term cash advances can be deadly for your finances. Once you get trapped into a vicious payday loan cycle, it's difficult to pay them off. If you're unable to handle them on your own, you can approach a company offering debt relief services and pick a suitable solution for yourself. Professional companies can process your payday loans and help you to get rid of them as early as possible.

What should be considered before you choose debt help services?

If you're eager to get rid of your debt problems and regain your peace of mind, the following strategies might help you along the way:

  1. Looking at your affordability: You want to repay your bills. It’s good. But before you choose a debt help plan, there is one important factor you need to consider. For instance, how much can you pay every month? At what rate? Calculate the amount you can pay toward your bills. Figure out the logistics before moving ahead.
  2. Checking our other financial obligations: Do you have any major commitment? Are you planning to get married or buy a house or start a family? If so, then you may want to save extra money for down payments or organizing your wedding. List all your commitments and financial goals that might affect you after choosing debt help services.
  3. Sticking to a budget – No debt relief solution will work for you if you keep splurging on luxuries, in spite of having rising debt amounts. Budgeting may not be the only way to solve your financial problems, but it's evidently the basic step towards a debt-free life. A monthly budget can not only help you save to pay off your bills, but can also reduce your undue expenses and missed payments. Simple budgeting tips can help you to manage your finances, so that you can avoid debts in the first place.
  4. Comparing your options – Whether it's for choosing the right debt relief solution, or for picking the company offering you debt advice, you always need to realize the importance of comparing your options. Comparing can help you to come up with the best deal when you choose among the several available options in the market. Not only that, it can also help you to pick which among management, consolidation, settlement or bankruptcy will agree to your debt situation.
  5. Avoiding financial mistakes – Being financially aware and responsible can often help an individual to avoid debts. A well-researched man doesn't believe in myths and can avoid making financial blunders which may push him into debt. He knows that canceling unpaid credit cards, or closing off old accounts may negatively effect his credit report and not the other way around.

What shouldn’t you do when you seek help for getting out of debt?

A single mistake can push you towards financial problems. When you need help paying off debt, you have to be extra careful. Otherwise, you may get into new problems yet again. Here are a few things you should never do.

When you lower your payoff amount, your debt-to-income ratio and credit-utilization ratio drop. This improves your credit score automatically.

Do you need debt help and advice? Our financial coach can help you out. Just call at 800-530-6854. If 5761 clients can become debt free in the last 10 years, then so can you. So don’t wait and let your outstanding balance increase. All you need to do is just make one call.

  • Ignoring the root cause of the debt: Before you implement a debt help plan, make sure you find out the reason that pushed you toward financial problems. Unless you do that, you’ll keep getting into debt problems time and again. Why did you get into debt? Did you live beyond your means? Did you have an unexpected expense? What step have you taken to cover unexpected expenses? Ask these questions to yourself first.
  • Using credit cards for shopping: When you need help getting out of debt, stop making purchases with credit cards. There is no point incurring additional interest when you’re already in a financial crisis. If you decide to act against the advice of financial counselors and continue to whip credit cards, then don’t fret when you find yourself in problems again.
  • Giving too much importance to your credit score: Your credit score matters more when you’re applying for a home loan or a job. When you’re working on a debt help plan, your main concern should be on how to reduce the total outstanding balance instead of your credit score.

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